Flowserve Corporation (FLS)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,108,720 | 4,965,210 | 4,920,020 | 4,875,750 | 4,790,630 | 4,505,990 | 4,582,730 | 4,703,010 | 4,749,770 | 5,595,920 | 4,818,670 | 4,809,640 | 5,314,680 | 5,173,580 | 4,778,380 | 4,762,070 | 4,938,280 | 4,764,490 | 4,821,210 | 4,846,500 |
| Total stockholders’ equity | US$ in thousands | 1,936,100 | 1,874,110 | 1,884,450 | 1,846,320 | 1,824,990 | 1,657,120 | 1,721,400 | 1,754,990 | 1,804,320 | 1,759,500 | 1,740,980 | 1,712,030 | 1,730,990 | 1,671,920 | 1,618,430 | 1,659,430 | 1,746,740 | 1,744,340 | 1,726,310 | 1,686,800 |
| Financial leverage ratio | 2.64 | 2.65 | 2.61 | 2.64 | 2.63 | 2.72 | 2.66 | 2.68 | 2.63 | 3.18 | 2.77 | 2.81 | 3.07 | 3.09 | 2.95 | 2.87 | 2.83 | 2.73 | 2.79 | 2.87 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,108,720K ÷ $1,936,100K
= 2.64
Flowserve Corp.'s financial leverage ratio has ranged from 2.61 to 2.72 over the past eight quarters. The ratio indicates that the company has been primarily financing its operations with debt rather than equity.
A ratio above 1 suggests that the company relies more on debt financing, which could potentially magnify the returns to shareholders but also increases financial risk. Flowserve Corp.'s consistent financial leverage ratio above 2 indicates a significant reliance on debt for financing its operations during the period analyzed.
It is important to note that a higher financial leverage ratio could be a cause for concern as it signifies higher financial risk. Investors and stakeholders should closely monitor the company's ability to manage its debt levels and ensure they do not reach unsustainable levels that could jeopardize the company's financial stability in the long term.
Peer comparison
Dec 31, 2023